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Three-dimensional finite element (FE) modeling of magnetic flux leakage (MFL) technique has been performed using COMSOL 3.4 for prediction of leakage fields from surface and sub-surface defects in a 12 mm thick carbon steel plate. The tangential and normal components of leakage fields have been predicted to study the influence of defect location and depth on the detectability of sub-surface defects by the MFL technique. The effect of lift-off on MFL signals has also been studied for enhancing the reliability of detection of defects.